Investcorp strengthened its U.S. industrial real estate portfolio with the acquisition of two property portfolios in Minneapolis and Baltimore for a combined $335m.

The deal aligns with the firm’s strategy to expand in key industrial markets with strong population bases and resilient tenant demand.

The acquisitions include 27 properties totaling 2.7 million square feet, comprising a 17-building portfolio in Minneapolis spanning nearly 1.9 million square feet and a 10-building portfolio in Baltimore covering 881,000 square feet.

Herb Myers, global co-head of real assets at Investcorp, highlighted the continued demand for industrial assets, noting that supply-chain evolution and e-commerce growth support long-term viability. He emphasized that limited new supply of infill and urban industrial properties reinforces the asset class’s strength despite broader economic volatility.

Market data underscores the appeal of these acquisitions. Baltimore and Minneapolis have outpaced rent growth in major U.S. metros, averaging 13.4% and 11.4%, respectively, over the past three years, compared to 9.3% across the top 50 markets, according to Green Street Advisors. Minneapolis benefits from a diverse economy with 17 Fortune 500 companies, including Target, Best Buy, 3M, and General Mills. Baltimore’s pro-business climate has attracted major corporations such as Optum, JLL, Under Armour, and Morgan Stanley.

Michael Moriarty, managing director and head of commercial acquisitions at Investcorp, noted that both portfolios feature modern industrial specifications, including high clear heights, ample loading docks, and proximity to major highways and employment hubs, making them attractive to a diverse tenant base.

Investcorp ranks among the top five cross-border buyers of U.S. real estate over the past five years, according to Real Capital Analytics. Its U.S. real estate strategy focuses primarily on industrial and residential assets, which comprise 98% of its portfolio. The firm has acquired approximately 1,400 properties valued at over $26bn since 1996.

The Minneapolis and Baltimore acquisitions further solidify Investcorp’s position in the U.S. industrial real estate market, reinforcing its commitment to scaling in high-growth regions with strong tenant fundamentals.